Closing an Inventory Fiscal year transfers summarized current-year information to history. You can also choose to remove Discontinued Items, Sold Lot Attributes, Sold Receipts and Cost Change History, and change your Standard Costs to prepare for the new year.
Be aware that changing Standard Costs DOES NOT create a financial batch to reflect the inventory valuation change in your general ledger. This entry must be prepared manually by referring to pre- and post-close Stock Status reports to determine the valuation change.
Be aware that changing Standard Costs DOES NOT create a financial batch to reflect the inventory valuation change in your general ledger. This entry must be prepared manually by referring to pre- and post-close Stock Status reports to determine the valuation change.
In preparation for closing the year –
1. Enter and post all transactions for Sales Order Processing, Invoicing, Purchase Order Processing, Inventory Control, Bill of Materials, Project Accounting, Field Service, Manufacturing - any transaction that might affect inventory.
2. If needed, complete a Stock Count, then enter and post any adjustments.
3. Print the following reports for your permanent records.
![]()
4. Make a complete backup of your company data.
* click image to enlarge
5. Open the Inventory Year-end Closing window.
Tools>Routines>Inventory>Year-End Close
![]()
6. Choose records to remove. You can remove records for discontinued items, sold lot attributes, and sold receipts and historical cost changes, as needed. For more detailed information on these items, refer to GP Help.
* click image to enlarge
7. To update Standard Costs for items with FIFO Periodic or LIFO Periodic valuation methods, check 'Item’s Standard Cost'.
8. Click ‘Process’ to close the year.
Note - While the year-end closing is in process, you won’t be able to post transactions or batches, reconcile quantities, change valuation methods, or change decimal places. If you attempt to begin one of these procedures, an alert message will appear, warning you that you must wait until the year-end closing process has been completed.
9. After you’ve closed the year, you should make a final backup of your company data.
The effects of closing the year in Inventory are as follows –
The effects of closing the year in Inventory are as follows –
- All summarized current-year quantities, costs, and sales information of items you’ve been keeping summarized sales history on are transferred to transaction history.
- The Beginning Quantity of each item is updated from the On Hand quantity at each site. (Some reports—such as the Turnover Report—use the beginning quantity field in calculations.)
- The Quantity Sold field for each item is reset to zero.
- The Quantity Sold field for each item is reset to zero.
Depending on the selections made in the Inventory Year-End Closing window, these tasks might also be accomplished –
- Purchase receipts of items that have been completely sold are removed.
- Cost change history information is removed.
- Discontinued items that have been completely sold are removed.
- Lot attributes of items tracked by lot numbers that have been completely sold are removed.
- Standard Costs are updated from the value in the Current Cost field for items using FIFO or LIFO Periodic valuation method.
Note again, that updating Standard Costs DOES NOT create a financial batch. Print a pre- and post-close Stock Status report to determine the valuation change. Then create a manual journal entry to post the difference.
Tomorrow we'll look at Closing the Sales year.
Tomorrow we'll look at Closing the Sales year.
No comments:
Post a Comment